Pramuka Bank Case Study
1. Introduction
Pramuka savings and development bank was established operations in Sri Lanka in 21st July 1997. Mr. Rohan Perera, Seylan Bank 's founder Chief Executive Officer/General Manager has resigned from Seylan bank and with collaboration with some Seylan bank directors formed the Pramuka bank. Mr. Rohan Perera applied for license to operate a commercial bank from Central Bank of Sri Lanka in late 1996. But after 6 years the bank was collapsed and led economic system in a crucial situation.
7. Political Involvement to the Banking Industry
Politics lay behind the establishment of PSD in 1997, when the governor of the central bank was overruled by the President and forced to license Pramuka Bank’s operations (The Sunday Leader, 2002). The central bank’s governor unfortunately appeared to stand alone in his reservations regarding the integrity and ethics of the Pramuka Bank chairman, as even the attorney general at the time failed to act on a file which held startling revelations of a one million US dollar fraud perpetrated by the Pramuka Bank owner during his tenure as chief financial officer and general manager of Seylan in 1992. In this infamous fraud,
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